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section 2032A(e)(8). Respondent ignored the automatic election
provision in section 20.2032A-4(b)(2)(i), Estate Tax Regs., and
never notified petitioner of any defects in its special use
valuation election under section 2032A(e)(8). Respondent’s
determination in the notice of deficiency was that petitioner
failed to make an effective and timely election under the
provisions of section 2032A. That rationale was based on
petitioner’s failure properly to document comparable properties
meeting the requirements of section 2032A(e)(7) and the
regulations thereunder. The failure to document rentals of
comparable properties meeting the requirements of section
20.2032A-4, Estate Tax Regs., precludes valuing the properties
under section 2032A(e)(7). As discussed above, however, that
failure does not make an otherwise valid election under section
2032A(e)(8) ineffective. See sec. 20.2032A-4(b)(2)(i), Estate
Tax Regs.; see also Estate of Hughan v. Commissioner, supra.
Having failed to persuade us that petitioner made no
election under section 2032A(e)(8), respondent now seeks to
invalidate the election by pointing out that petitioner did not
introduce evidence on all the required factors set forth in
section 2032A(e)(8). We do not agree with this criticism of
petitioner’s election.
Respondent’s principal arguments before the submission of
his posttrial briefs were threefold:
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